Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:

• Sales are budgeted at $304,000 for November, $324,000 for December, and $224,000 for January.
• Collections are expected to be 60% in the month of sale and 40% in the month following the sale.
• The cost of goods sold is 75% of sales.
• The company desires to have an ending merchandise inventory at the end of each month equal to 90% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
• Other monthly expenses to be paid in cash are $22,500.
• Monthly depreciation is $28,000.
• Ignore taxes.

Balance Sheet

October 31AssetsCash$33,500Accounts receivable84,000Merchandise inventory205,200Property, plant and equipment, net of $624,000 accumulated depreciation919,000Total assets$1,241,700Liabilities and Stockholders' EquityAccounts payable$253,000Common stock754,000Retained earnings234,700Total liabilities and stockholders' equity$1,241,700

Retained earnings at the end of December would be:

Garrison 16e Rechecks 2017-10-03, 2017-10-31